ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

How To Identify and Protect Yourself From IRS Scams This Tax Season

As taxpayers get ready for tax season, the IRS warns individuals to watch out for tax scammers and their new tricks.
UPDATED MAR 11, 2024
Cover Image Source: Photo by Mikhail Nilov | Pexels
Cover Image Source: Photo by Mikhail Nilov | Pexels

Scammers often exploit individuals' fear of the Internal Revenue Service (IRS) to steal personal information or extort money. Understanding how to identify and protect yourself from these scams is essential for safeguarding your finances and personal information. Here's a comprehensive guide to help you navigate IRS scams this tax season.



 

IRS scams come in various forms, but they typically involve fraudsters impersonating IRS agents or using deceptive tactics to coerce individuals into disclosing sensitive information or making fraudulent payments. Common IRS scams include:

Phone Scams: Scammers call unsuspecting individuals, claiming to be IRS agents, and threaten them with arrest, deportation, or legal action for purported tax violations. They often demand immediate payment via wire transfer, prepaid debit card, or gift card.

Email Phishing: Fraudulent emails disguised as official IRS communications are sent to individuals, prompting them to click on malicious links or provide personal information such as Social Security numbers, bank account details, or passwords.

Identity Theft: Scammers use stolen personal information to file fraudulent tax returns or claim tax refunds on behalf of unsuspecting victims. This type of scam can result in financial losses and complications with the IRS.

Image Source: Getty Images | Photo by Scott Olson
Image Source: Getty Images | Photo by Scott Olson

Recognizing the signs of such scams is essential for avoiding potential fraud. Here are some indicators that an interaction with the IRS may be a scam:

Threats or Intimidation: Genuine IRS agents do not use aggressive or threatening language to demand immediate payment or threaten legal action over the phone.

Unsolicited Communication: Be wary of unsolicited phone calls, emails, or text messages claiming to be from the IRS. The IRS typically initiates contact through traditional mail correspondence.

Requests for Payment: The IRS does not demand payment via wire transfer, prepaid debit cards, or gift cards. Any such request is likely a scam.

Requests for Personal Information: The IRS will never ask for sensitive information like Social Security numbers, passwords, or financial account details via email, phone, or text message.


 
 
 
 
 
View this post on Instagram
 
 
 
 
 
 
 
 
 
 
 

A post shared by Western New York FCU (@wnyfcu)


 

Suspicious URLs or Email Addresses: Phishing emails often contain suspicious links or email addresses that mimic official IRS domains. Exercise caution before clicking on any links or downloading attachments.

Taking proactive measures can help mitigate the risk of falling victim to IRS scams. Follow these tips to safeguard your personal information and finances:

Verify Caller Identity: If you receive a call from someone claiming to be from the IRS, ask for their name, badge number, and a callback number. Verify their identity by contacting the IRS directly using the official phone number listed on their website.



 

Be Cautious With Emails: Avoid clicking on links or downloading attachments from unsolicited emails claiming to be from the IRS. Instead, manually type the IRS website address into your browser to access official information.

Protect Personal Information: Never share sensitive information like Social Security numbers, bank account details, or passwords in response to unsolicited communications. The IRS will never ask for this information via email, phone, or text message.

Use Secure Channels: When communicating with the IRS or accessing tax-related information online, ensure that you use secure and reputable channels. Look for the "https://" protocol in website URLs and verify the legitimacy of IRS-related websites.

If you encounter a potential IRS scam or believe you've been targeted by fraudsters, report the incident to the IRS, the Federal Trade Commission (FTC), or your state's attorney general's office. By reporting scams, you can help prevent others from becoming victims.

MORE ON MARKET REALIST
Rick Harrison has been wrong about some items in the past, and once even doubted himself.
15 hours ago
Fans of some shows can be quite brutal in their assessment and they don't shy away from expressing it.
17 hours ago
Ken Jennings might be extremely smart, but even he had to concede defeat to technology more than a decade ago.
19 hours ago
While most Sharks were out, the founder of Dirty Cookie, Shahira Marei, found her perfect partner.
20 hours ago
Some entrepreneurs need a little push and there's no one like a mother to do that.
1 day ago
The player effortlessly swept the game and Carey was impressed but couldn't respond to the offer.
1 day ago
Richard Benjamin Harrison was very impressed with what the guest had brought to the show, but remained calm.
1 day ago
Jennings is a legend of the game himself and he has a lot of respect for other successful players.
1 day ago
Harrison was ready to make 'the biggest buy in Pawn Stars history' for the item.
1 day ago
This wasn't the first time that fans were upset about contestants not recognizing a well-known personality.
2 days ago
The watch was sold four years after it came to the show for a massive amount of money.
2 days ago
Many fans also mentioned how they were themselves unable to solve it.
2 days ago
Things could have ended up quite nasty had he connected his boot with the host's face.
2 days ago
One of the things that made the record so valuable was the signature of a late, great drummer.
3 days ago
No one expects to see someone intentionally drop their phone in the toilet, but that's what we got.
3 days ago
The experts were certainly intrigued as they had probably never appraised a food item before.
3 days ago
He loved the item from the moment it arrived in the store, and wasn't going to let it go that easy.
3 days ago
The guest told his mom that they were going to spend the weekend in Acapulco after the big appraisal.
3 days ago
After making his ring debut in 1984, James Harris was nicknamed 'The Ugandan Giant.'
4 days ago
It's not always the successful ones that get all the attention, some contestants become infamous too.
4 days ago